AML

Anti-money laundering advisory services

ATW helps small and large organizations to meet their business goals by delivering a range of advisory services designed to help enhance risk management activities and improve business processes. From our network of member firms around the world, ATW's advisory professionals offer services that help clients assess, improve, and monitor their business risks.

AML regulatory environment

The Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance (the "AMLO") has been in effect since 1 April 2012.

The AMLO introduces a more robust infrastructure for sanctions against financial institutions and their senior management, codify and strengthens expectations that have hitherto been only set out in guidance, and brings under statutory regulation some other areas that had not previously been covered.

The four regulators (i.e., the Hong Kong Monetary Authority, Securities & Futures Commission of Hong Kong, Hong Kong Customs and Excise Department and Office of the Commissioner of Insurance) issued the new AML guidelines in Jan 2012 to coincide with the commencement of the AMLO .

Individual members of senior management will be exposed to the possibility of personal penalties in the event that AML systems are found wanting (maximum fine of HK$1M and to imprisonment for 7 years).

HKMA further requires Authorized Institutions to build a robust and effective Anti-Money Laundering and Counter-Terrorist Financing regimes to combat laundering the proceeds of tax crime effective from Jun 2013.

The HKMA recently announced that there would likely be significant AML/CFT related fines forthcoming. HKMA focus areas include tax evasion, Correspondent Banking and RMA and Transaction Monitoring.

What are the key challenges?

The increased emphasis by regulators in most countries, and changing rules, has Catapulted AML onto nearly every financial services organization's strategic risk and control governance agenda.

Boards of directors, executive management, compliance, operations and internal audit recognize that failure to maintain an effective AML program could lead to fines, costly litigation, prison sentences for board members and executive management, strategic failures, as well as harm to an organization's reputation.

To meet new requirements and supervisory expectations, financial institutions should consider some of the key issues we have noted when reviewing AML .

Programs:

Insufficient management oversight.

Inadequate independent monitoring procedures.

Lack of segregation of duties on key processes.

Outdated policies and procedures.

Lack of record-keeping and evidence of controls.

Inappropriate and inadequate staff training.

Inadequate risk assessment .

Improper threshold settings .

RMA Exchange and Correspondent Banking.

An efficient and effective approach to AML .

Money laundering detection and prevention requires a significant investment in resources to develop, implement, and enforce an effective AML program. As a result, there is a focus on improving the efficiency of programs. Organizations should consider a risk-based approach for their company's program to address regulatory expectations, optimize spending and provide global coverage.

Our professional AML team works in many countries in which financial services firms conduct business. Our subject matter professionals bring hands-on experience in assessing, improving and monitoring AML programs for all types of financial services companies, ranging from banks to insurance companies to asset managers.

Based on your needs, our client serving team may include:

Former senior level regulators

Certified anti-money laundering specialists

Certified public accountants

Certified internal auditors

Certified fraud examiners

Information technology professionals

Bankers

Lawyers and other financial services professionals with AML and industry experience.